Correlation Between Sichuan Yahua and Dongxing Sec
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Dongxing Sec Co, you can compare the effects of market volatilities on Sichuan Yahua and Dongxing Sec and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sichuan Yahua with a short position of Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Dongxing Sec.
Diversification Opportunities for Sichuan Yahua and Dongxing Sec
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and Dongxing is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec and Sichuan Yahua is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sichuan Yahua Industrial are associated (or correlated) with Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Sichuan Yahua i.e., Sichuan Yahua and Dongxing Sec go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Dongxing Sec
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 0.91 times more return on investment than Dongxing Sec. However, Sichuan Yahua Industrial is 1.1 times less risky than Dongxing Sec. It trades about 0.15 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.1 per unit of risk. If you would invest 911.00 in Sichuan Yahua Industrial on September 26, 2024 and sell it today you would earn a total of 305.00 from holding Sichuan Yahua Industrial or generate 33.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Sichuan Yahua Industrial vs. Dongxing Sec Co
Performance |
Timeline |
Sichuan Yahua Industrial |
Dongxing Sec |
Sichuan Yahua and Dongxing Sec Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sichuan Yahua and Dongxing Sec
The main advantage of trading using opposite Sichuan Yahua and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua position performs unexpectedly, Dongxing Sec can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.Sichuan Yahua vs. Eastern Communications Co | Sichuan Yahua vs. GigaDevice SemiconductorBeiji | Sichuan Yahua vs. Semiconductor Manufacturing Electronics | Sichuan Yahua vs. StarPower Semiconductor |
Dongxing Sec vs. Kweichow Moutai Co | Dongxing Sec vs. Contemporary Amperex Technology | Dongxing Sec vs. G bits Network Technology | Dongxing Sec vs. BYD Co Ltd |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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